Sector rotation is the lifeblood of any bull market, and we don’t expect things to be any different this time around.

After a prolonged period without progress, small caps are back in the driver's seat. The Russell 2000 just capped off a bearish-to-bullish trend reversal with a decisive resolution.

At the same time, the profit-taking in mega-cap growth stocks has been non-stop these past two weeks.

The chart below shows the Russell 2000 printing its best 5-day streak of outperformance relative to the Technology Sector… in history:

We call these kinds of moves "initiation thrusts" because it is common for them to occur at inflection points, or the beginning of new trends.

In the case of the above, this extreme reading is telling us that small caps are ready to make a turn versus big tech.

Also notice where all of this is taking place. The extreme momentum in favor of small-caps is...

The most significant insider buy on today's list comes via a Form 4 filing by the chairman and CEO of Truist Financial Corporation $TFC, William H. Rogers Jr.

Rogers reported a purchase of 57,300 TFC shares, equivalent to $2.5 million.

Liberty 77 Capital L.P bought 149,682 shares of Lions Gate Entertainment Corp $LGF.

Here’s The Hot Corner, with data from July 25, 2024:

In another Form 4, William R. Johnson, chairman of the board of directors of United Parcel Service $UPS, revealed a purchase worth $643,035.

Director Robert W. Stallings reported a purchase of 5,500 shares in Texas Capital Bancshares $TCBI.

TCBI has been carving out a base for roughly three years.

Price is pressing against the range's upper bounds as buyers absorb all the overhead supply at this resistance zone:

The level to...

The most significant insider buy on today's list comes via a 13D filing by Abdiel Capital LP.

This time, the investment firm revealed an additional purchase of 82,500 shares in Appian Corporation $APPN, increasing its ownership stake to 18.60%.

Here’s The Hot Corner, with data from July 24, 2024:

Rep. Michael McCaul of Texas filed a Periodic Transaction Report declaring a purchases in the following stocks:

• Apple Inc $AAPL ($500,000 - $200,000);
• Meta Platforms Inc $META ($50,000 - $100,000);
• Monster Beverage Corporation $MNST ($50,000 - $100,000);
• Workday Inc $WDAY ($50,000 - $100,000);
• Alcoa Corporation $AA ($50,000 - $100,000);
• Vishay Intertechnology Inc $VSH ($50,000 - $100,000);
• Advanced Micro Devices Inc $AMD ($15,000 - $50,000); and
• ...

The most significant insider buy on today's list comes via a Form 4 filing by Abdiel Capital LP.

The investment firm revealed a purchase of $6.7 million in Appian Corporation $APPN.

Director Roger D. Carlile bought 25,000 shares of Resources Connection $RGP, equivalent to $281,250.

Here’s The Hot Corner, with data from July 23, 2024:

In another Form 4, Terrence W. Cavanaugh, director of Selective Insurance Group $SIGI, reported a purchase of $171,700.

SIGI broke out of a multi-year base in 2021 and ripped higher towards the 161.8% extension. But price has since retraced all gains and is retesting the breakout level.

We're wondering if this former resistance will turn into support this time around:

The line in the sand lies at 81.15. If we're above this level, the risk is to the upside. 

...

The most significant insider buy on today's list comes via a 13G filing by Citadel Advisors LLC.

The investment firm reported an initial stake of 5.30% in Sphere Entertainment Co $SPHR.

Here’s The Hot Corner, with data from July 22, 2024:

The president and CEO of Selective Insurance Group $SIGI revealed the acquisition of 2,400 shares, equivalent to $200,532.

SPHR has been in the base-building process for roughly three years as buyers try to take control and force an upside resolution from this rounding bottom formation:

The line in the sand lies at the 45 level.

A breakout above that zone could send SPHR on a fresh reaction rally toward the old all-time highs.

Stay tuned. We'll be back on Wednesday with more insider activity.

And...

The most significant insider buy on today's list comes via two separate Form 4 filings by the president and the CEO of The Charles Schwab Corporation $SCHW.

They reported purchases for a combined amount of $2.2 million.

Here’s The Hot Corner, with data from July 19, 2024:

Director John W. Childs reported the acquisition of 28,400 shares in Biohaven Pharmaceutical Holding Company Ltd $BHVN.

BHVN came public in September 2022 and ripped higher with authority. However, price has retraced some gains since it peaked in March, successfully retesting a critical polarity level.

The line in the sand lies at 27.

If we're above this level, the risk is still to the upside.

Stay tuned. We'll be back on Tuesday with more insider activity.

And...

The most significant insider buy on today's list comes via a Form 4 filing by U.S. Bancorp $USB director Aleem Gillani.

Gillani reported the acquisition of 10,000 shares, equivalent to $449,900.

Here’s The Hot Corner, with data from July 18, 2024:

Boxer Capital LLC filed a 13G for uniQure N.V. $QURE revealing an initial stake of 5.10%.

After a prolonged decline since January 2022, US Bancorp stopped going down last year.

After price emerged from a rounding bottom formation, the stock transitioned into a sideways consolidation.

With a monster regional bank rally over the past two weeks, USB is right back at the upper bounds of its range.

We think it breaks out this time. 

Have a great weekend. We'll be back on Monday with more insider activity.

The most significant insider buy on today's list comes via a 13D filing by Gates Capital Management.

The investment firm revealed an increase in ownership from 9.45% to 9.60% in Vista Outdoor Inc $VSTO.

Here’s The Hot Corner, with data from July 17, 2024:

Perceptive Advisors LLC reported an increase in its ownership stake from 7.10% to 12.80% in Orchestra BioMed Holdings Inc $OBIO.

VST is resolving higher from a rounding bottom pattern.

As long as we’re above the 2023 highs, this is a valid trend reversal, and the path of least resistance points higher.

Stay tuned. We'll be back on Friday with more insider activity.

And please reach out with any questions. We love hearing from you!

The most significant insider buy on today's list comes via a 13D filing by Starboard Value LP.

Earlier in the week, the hedge fund revealed an original stake of 6.60% in Match Group Inc $MTCH.

Starboard has already sent a letter to executives and the board, which you can access here.

Here’s The Hot Corner, with data from July 16, 2024:

Two directors of Zevra Therapeutics Inc $ZVRA, John B. Bode and Thomas Anderson, filed Form 4s revealing purchases of a combined amount of $146,629.

After a prolonged decline since October 2021, MTCH stopped going down late last year.

As you can see, price is building a short-term bottom as it threatens to break higher from a falling wedge.

If there's a place and a moment for bulls to take control, we think this is it.

MTCH also...

The most significant insider buy on today's list comes via a Form 4 filing by AP Moller Holdings.

The investment company reported an additional purchase of $28.9 million in Noble Corporation $NE.

Viking Global Investors filed a 13G for Longboard Pharmaceuticals $LBPH revealing an initial stake of 5.20%.

Here’s The Hot Corner, with data from July 15, 2024:

In another Form 4, Michelle O'Hara, executive vice president and chief human resources officer of Science Applications International Corporation $SAIC, bought 1,000 shares of her own company’s stock.

Over in Washington, Sen. Markwayne Mullin of Oklahoma revealed a purchase worth between $15,000 and $50,000 in...

The most significant insider buy on today's list comes via a Form 4 filing by Abdiel Capital LP.

The investment firm reported a purchase of $18 million in Appian Corporation $APPN.

Here’s The Hot Corner, with data from July 12, 2024:

Deep Track Capital filed a 13G for Verona Pharma plc $VRNA revealing an initial stake of 5.08%.

VRNA came public in May 2017 and has been building a monster base since its IPO.

Last week, price reclaimed the AVWAP from last year's highs with authority, and VRNA is now approaching another critical resistance level:

The bias is sideways for longer if price remains stuck in the range. However we have a clear level at approximately 26.50.

If and when buyers lift prices above that area of ​​overhead supply, VRNA could finally take off.

Stay tuned. We'll be back on...

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Welcome to the Hot Corner Insider Weekly Report!

As you know, we spend a lot of time tracking insider activity to come up with this universe.

But that’s only half the battle!

Once we identify the names insiders are targeting, we overlay our expert technical analysis to see if the market agrees with their actions.

While we track some of the most powerful and well-informed market participants… we aren’t just going to follow them blindly into their trades.

We want to see that the insider activity is confirmed by the trend before we get involved. 

When we can check both boxes, we identify asymmetric risk/reward setups and then jump in and ride these trends higher alongside the smart money.

You can...